Date Posted: 19/05/20
Now that lockdown is being eased, Mark Shearing of Putterills answers the sixty-four thousand dollar question about the property market.
As we gradually emerge from lockdown, the first question clients are asking us is: how will the coronavirus influence property prices?
This is something that is hard to answer with any absolute accuracy at this early stage. However, the question is a crucial one.
Much will depend on the shape of the recovery. If it is V-shaped, we can be hopeful for only minor turbulence; however, if there is a long tail, recovery prices in specific regions could be affected.
Whilst the lockdown has thwarted many plans to move, some people have found that post-virus working life promises the chance of more freedom. It is likely that many people will opt to work from home rather than commute, so a move to a more rural location or to be closer to their families will be possible and even preferable. Many of these buyers will also be looking for properties with work-from-home space; others will want multi-generation family options.
Whilst our offices have reopened for a matter of days, we are very pleasantly surprised by the enthusiasm for the property market to return to normal. We are arranging high levels of both viewings and valuations and several of our offices have already reported new sales being agreed.
We have seen a marked increase in demand from people wanting to move out from London. Hertfordshire has excellent road and rail links so, whilst the daily commute may no longer be a necessity, London remains within easy reach and more rural living is easily achievable.
There will of course be regional variations. This brings us back to price but, in this, nothing has changed. The first thing an estate agent learns is that whatever price is quoted on a property, in the end, it will find its correct level. A property is worth what someone will pay for it. An invisible hand called the market is not affecting property prices; people are affecting them.
We have sold properties on Christmas Eve. We have sold properties in the depths of great recession and in all parts of several boom-and-bust cycles. Even now, through the Covid19 pandemic, we have managed sales through to completion.
No matter what the trend is across the Country, throughout this pandemic our area has proved to be resilient and popular. Coronavirus has not altered that.
So what about prices? In the property sector, realism will move us out of this crisis. With a realistic price, a pragmatic attitude to negotiation and a sensible buyer, coronavirus will be unable to infect our market. Realism is our vaccine.
For realistic advice about marketing your property, call us today to experience a friendly and professional service from a company that has been successfully selling in Hertfordshire for nearly 30 years.
We are open for business.
The Putterills Directors
T: 07795 438077
